What does the future hold for perfomance advertising in general?

A Natural Choice for Marketers in an

Economic DownturnNicky Iapino – Online Marketing

Consultant

Performance Marketing

Introduction

Over 10 yrs in Online Commission Junction DGM AdLINK Group (affilinet)

Affiliate champion Performance Marketing in my blood!

Agenda

History of Online Performance Marketing Current Market Status Trends What should Advertisers focus on? Total Advertising spend Online v Offline How could Performance work Offline?

History of Online Performance Marketing

Started in the US by Jeff Bezos – Amazon Affiliate Marketing entered the UK in 1999 Affiliate Networks exploded 2001-04 By 2004, market was worth £600m Lead Generation business started to emerge Performance Networks and Arbitrage Quality over Quantity

Current Market Status

£0

£500

£1,000

£1,500

£2,000

£2,500

£3,000

£3,500

£4,000

£4,500

£600m

£1,350m

£2,160m

£3,130m

£3,820m

UK online retail sales generated by affiliate market-ing: 2004-08

Source: e-consultancy 2009

2004 2005 2006 2007 2008

GBP

Mill

ions

What’s happening out there?

Trends in Performance Marketing

Reliance on SEM Publishers – brand bidding restrictions

Incremental sales value – how do Incentive Publishers fit in?

Voucher Code debate! Measuring against other Online activity – how

far do you go? Attributing multi-commission payments on a

sale

What should Advertisers focus on?

Quality over Quantity Servicing top relationships correctly – more

face-to-face contact Don’t try & grow in a direction that competes

with your top relationships There is still growth in Online…particularly in

Performance!

Total Advertising Spend : Online v Offline

Total Spend is worth £17.5bn

Online Spend

Online UK Internet Advertising worth £3,3bn in 2008 -

the only medium to experience growth 20% of all advertising budgets now spent

online Level pegging with Press Display

Offline Growth Trends: 2008

Offline Cinema only other medium to show positive

growth; 1% of market The spotlight is now on accountability Media rationing in place Commoditization of buying Prices for Offline real estate have plummeted ROI is now a given

Total Advertising Spend : Online v OfflineCinema

1%

Direct Mail12%

Di-rec-

tories5%

Internet19%

Outdoor5%

Press Classified13%

Press Display20%

Radio3%

Television22%

Cinema

Direct Mail

Directories

Internet

Outdoor

Press Classified

Press Display

Radio

Television

Source: IAB/PriceWaterhouseCoopers, 2009

Total Adspend: £17.5 billion

How could Performance work Offline?

TVPRCO channels are still under utilising Performance opportunities

Remnant space and CPA Commonplace to see URLs in Print and

Broadcast format but… These are regularly generic, and not dedicated

to a particular offer, or call to action

Radio Advertising

Volkswagen

British Airways

Adding in Performance

Both adverts push the product’s brand message

Slight amendments to the script would allow you to build in A product-specific call to action A unique telephone number and/or URL A trackable action, and an attribution value (CPA)

TV Advertising

Vodafone ‘Freedom Packs’

Limited customer engagement Generic contact point No specific call to action Could use Performance to help re-establish

brand within busy sector

Press Advertising

Indesit Washing Machine Philips AUREA Television

Adding in Performance

Ads appeared in Stuff magazine (UK ‘gadget’ magazine, Feb edition)

Neither advert had a specific offer for the model

Adding a unique offer URL or phone number enables clients to track through to order…

And pay Media Partner on a cost per order?

To Summarise

Online has a proven track record in Performance and there is still growth to come this year

Performance is emerging in Offline. It’s always been there, but there but tracking conversion has been manual

Clients looking for more customer engagement across all media

Interesting?

Talk to us…. get in touch

Nicky Iapino+44 7841 143243

[email protected]